Microsoft Gears Up For More Layoffs After AI Investment Despite Previous Workforce Reduction of 6,000
  • 638 views
  • 2 min read

Microsoft is reportedly preparing for another round of workforce reductions in July 2025, adding to the series of layoffs that have occurred throughout the year. This follows a significant layoff in May 2025, where the company cut approximately 6,000 jobs, representing about 3% of its global workforce. The new cuts are expected to affect thousands more employees, with the sales department and employees outside of the sales teams being heavily impacted. The announcement is expected to be formalized in early July.

These layoffs come as Microsoft is making substantial investments in artificial intelligence (AI). In fiscal year 2025, Microsoft is on track to invest approximately $80 billion in building out AI-enabled data centers to train AI models and deploy AI and cloud-based applications around the world. More than half of this investment will be in the United States, underscoring the company's commitment to the American economy and its confidence in the country's technological ecosystem. The tech giant, along with Meta, Amazon, and Alphabet, is set to spend a record $320 billion on AI and data centers in 2025, a significant increase from the $230 billion spent in 2024.

The job cuts appear to be a part of a broader restructuring effort aimed at aligning the company's resources with its strategic priorities in AI. While Microsoft has not explicitly stated that it intends to replace human jobs with AI, some reports suggest that terminated employees were involved in using AI tools or had AI in their job titles. This aligns with the trend observed in the tech industry, where companies are increasingly adopting AI to automate tasks and improve efficiency.

Microsoft's commitment to AI also extends to training and skilling programs. The company aims to train 2.5 million American students, workers, and community members with AI skills in 2025, with the goal of enabling them to secure new jobs, pursue different careers, and establish new businesses. This initiative reflects the company's belief that widespread AI adoption requires a skilled workforce capable of leveraging the technology's potential.

However, the layoffs have raised concerns among employees and industry experts. The decision to cut jobs, even among senior leaders in AI, has sparked questions about the future of AI roles within the company. Some worry that the rapid adoption of AI could lead to a decrease in job opportunities in certain sectors. One former Microsoft employee described the situation as "a horrible game of musical chairs" with "fewer and fewer chairs for people who are in these industries overall."

Despite the concerns, Microsoft maintains that it is committed to strategic growth and is evaluating business priorities to align with the right opportunities. The company has stated that teams evaluate business priorities and ensure they are aligning to the right opportunities for strategic growth. Following the July restructuring, Microsoft plans to continue with smaller-scale, performance-based layoffs, but does not anticipate additional large-scale workforce reductions of the same magnitude.


Writer - Gaurav Khan
Gaurav Khan is an ambitious journalist, poised to contribute to the vibrant media scene, driven by a passion for sports. A recent graduate with a strong analytical background, Gaurav is keenly interested in exploring sustainable development and urban planning. He's committed to delivering well-researched, insightful reports, aiming to shed light on issues pertinent to the future. His dedication to sports also hones his analytical approach and drive for impactful storytelling.
Advertisement

Latest Post


World  |  Aug 18, 2025
Tragedy struck in the Gharota area on the outskirts of Jammu on Sunday evening as an eight-year-old boy was fatally crushed by a speeding SUV. The young victim, Harsh Singh, was returning home with his father from their agricultural field when the in...

Sports  |  Aug 18, 2025
Lamine Yamal is stepping into the spotlight at Barcelona, embracing the pressure that comes with joining a club steeped in history and কিংবদন্তি. The young player, who Spain coach Luis de la Fuente has called "touched by the wand of God," has been ha...

Technology  |  Aug 18, 2025
Ethereum (ETH) is currently navigating a critical juncture, with analysts closely observing price movements for signals of a potential retest of $3. 9K followed by a substantial rally. Recent market behavior shows ETH consolidating within a $3,900 to ...

World  |  Aug 18, 2025
Parliamentary proceedings have addressed key issues ranging from digital payment policies to skill development initiatives for adolescent girls. Here's a summary of the important updates: **No Transaction Charges on UPI Payments** The government ha...

Advertisement
World  |  Aug 18, 2025
On Monday, August 18, 2025, Russian President Vladimir Putin contacted Indian Prime Minister Narendra Modi to provide a briefing on his recent summit with U. S. President Donald Trump in Alaska. The call, which was initiated by Putin, aimed to share i...

World  |  Aug 18, 2025
The Supreme Court has dismissed a petition challenging the validity of the 2024 Maharashtra Assembly elections, effectively upholding the Bombay High Court's previous decision. The petition, filed by Chetan Chandrakant Ahire, alleged that approximate...

World  |  Aug 18, 2025
The Income Tax Department is intensifying its investigation into US-based investor Jane Street's Indian operations, seeking clarity on the firm's control and potential tax avoidance. This probe follows a Securities and Exchange Board of India (SEBI) ...

Sports  |  Aug 18, 2025
The Premier League is back, with Leeds United hosting Everton at Elland Road to wrap up Matchweek 1 of the 2025-26 season. After a two-season absence, Leeds returns to the Premier League after winning the EFL Championship last season. Everton finishe...

Advertisement

About   •   Terms   •   Privacy
© 2025 DailyDigest360